Assembly Bill 369 proposes the introduction of a nonrefundable state income and franchise tax credit for individuals who are eligible for the federal employer-provided child care credit. This state credit will equal the amount claimed under the federal credit, which allows for up to 25% of qualified expenditures related to child care facilities and 10% for resource and referral expenditures, with a maximum credit of $150,000. The bill also stipulates that if a claimant is required to repay any portion of the federal credit due to the cessation of a child care facility's operation within ten years, they must similarly repay the state an equivalent amount.

The bill amends several sections of the statutes to incorporate this new credit, including the creation of new subsections that define the credit and outline the filing process and limitations. Notably, the credit cannot be claimed for expenditures related to facilities or services outside of Wisconsin. Additionally, the bill includes provisions for the administration of the credit and specifies that any increase in federal income tax liability due to the federal credit must also be added to the claimant's state tax liability. The amendments and new sections aim to enhance support for employer-provided child care in Wisconsin.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26, 71.34(1k)(g), 71.34, 71.45(2)(a)10, 71.45